MP Materials' (MP) shareholder Shenghe Resources is in talks to be acquired by state-owned China Rare Earth Group, Reuters reported Friday, citing two sources with knowledge of the matter.

A successful deal would give China Rare Earth control of Shenghe's stakes in foreign firms, including a 3% stake in MP Materials, which lists the US Department of Defense as its largest shareholder, according to the report.

Talks have been underway since earlier this year and it is not immediately clear when the acquisition will be announced or completed, Reuters said.

MP Materials and China Rare Earth did not immediately respond to MT Newswires' request for comment. Shenghe Resources could not be reached.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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